The Nature, Scope and Role of Managerial Economics in Business

Abstract

Managerial economics plays a significant role in the management of business enterprises because it helps managers develop a wide range of leadership traits that streamline business decisions for the long term. The model allows managers to make informed decisions that ensure an organization make sustainable profits and attain positive growth rates. Since decision-making and business management are inseparable concepts, managerial economics helps managers achieve business functions such as planning, hiring, and company organization. Managers often consider several options to reach a workable conclusion based on the variables surrounding a particular situation. Thus, managerial economics helps the decision-making in organizations as making informed decisions is at the core of management. This essay will discuss the nature and scope of managerial economics and point out the role and significance of the business concept in a business setting. The paper achieves this by highlighting that business executives are required to choose the best available alternatives and adopt specific approaches to management. Data will be collected, and findings analyzed to provide a detailed conclusion on managerial economics' scope, nature, and role in business.